Store Capital (NYSE: STOR) and First Potomac Realty Trust (NYSE:FPO) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.
Volatility & Risk
Store Capital has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500. Comparatively, First Potomac Realty Trust has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.
This table compares Store Capital and First Potomac Realty Trust’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Store Capital||$376.34 million||12.87||$123.32 million||$0.89||28.64|
|First Potomac Realty Trust||N/A||N/A||N/A||$0.69||16.14|
Store Capital has higher revenue and earnings than First Potomac Realty Trust. First Potomac Realty Trust is trading at a lower price-to-earnings ratio than Store Capital, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for Store Capital and First Potomac Realty Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Potomac Realty Trust||2||1||1||0||1.75|
Store Capital presently has a consensus price target of $26.91, indicating a potential upside of 5.57%. First Potomac Realty Trust has a consensus price target of $11.29, indicating a potential upside of 1.32%. Given Store Capital’s stronger consensus rating and higher probable upside, equities analysts clearly believe Store Capital is more favorable than First Potomac Realty Trust.
Store Capital pays an annual dividend of $1.24 per share and has a dividend yield of 4.9%. First Potomac Realty Trust pays an annual dividend of $0.40 per share and has a dividend yield of 3.6%. Store Capital pays out 139.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Potomac Realty Trust pays out 58.0% of its earnings in the form of a dividend.
Insider and Institutional Ownership
95.7% of Store Capital shares are held by institutional investors. Comparatively, 93.1% of First Potomac Realty Trust shares are held by institutional investors. 0.9% of Store Capital shares are held by company insiders. Comparatively, 2.1% of First Potomac Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Store Capital and First Potomac Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Potomac Realty Trust||-7.99%||-2.35%||-0.94%|
Store Capital beats First Potomac Realty Trust on 10 of the 13 factors compared between the two stocks.
About Store Capital
STORE Capital Corporation is an internally managed net-lease real estate investment trust. The Company is engaged in the acquisition, investment and management of single tenant operational real estate (STORE) properties. As of December 31, 2016, the Company owned a portfolio that consisted of investments in 1,660 property locations operated by 360 customers across 48 states. Its customers operate across a range of industries within the service, retail and manufacturing sectors of the United States economy, with restaurants, early childhood education centers, movie theaters, health clubs and furniture stores. The Company’s portfolio includes investments in approximately 1,330 property locations operated by over 300 customers across approximately 50 states. The Company provides real estate financing solutions principally to businesses that own STORE properties and operate within the broad-based service, retail and industrial sectors of the United States economy.
About First Potomac Realty Trust
First Potomac Realty Trust (First Potomac) is engaged in ownership, management, redevelopment and development of office and business park properties in the greater Washington, D.C. region. The Company’s segments include Washington, D.C., Maryland, Northern Virginia and Southern Virginia. The Company conducts its business through First Potomac Realty Investment Limited Partnership, its operating partnership. The Company’s portfolio consist a mix of single-tenant and multi-tenant office properties, and business parks. The office properties are single-story and multi-story buildings that are primarily for office uses, and business parks consists of buildings with office features combined with some industrial property space. As of December 31, 2016, the Company owned properties totaling 6.7 million square feet and had a non-controlling ownership interest in properties totaling an additional 0.9 million square feet through five unconsolidated joint ventures.
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